Will the US Government shutdown cause long-term pain for investors?

What effects on fixed income investors will the US government shutdown mean when unemployment is up and GDP growth is sluggish?

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The US Government shutdown is reportedly costing $15 billion a week.

The US Government shutdown could be a damaging blow to the economy, which was already starting to see warning signs of sluggish growth and metrics going backwards.

The first US Government shutdown in almost seven years, and the third during a Trump administration, has begun. As a result, investors are flying blind on the economic data front as crucial labour market and inflation releases are not being published, said Candriam.

“The main thing to note is that this particular shutdown is more due to a political impasse as opposed to the debt ceiling,” said Sridhar Manyem, Senior Director, AM Best. “So, the US Treasury will continue to fulfil its obligations.”

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